US DOJ seeks $61 million in crypto proceeds from illicit Iranian oil sales laundered on Binance

The U.S. Department of Justice has filed a civil forfeiture complaint against approximately $61 million in crypto proceeds from black-market sales of sanctioned Iranian crude oil and petroleum products.

Prosecutors alleged that the sales were intended to finance the Iranian government and its military components, including the Islamic Revolutionary Guard Corps (IRGC), a U.S.-designated terrorist organization. 

"Today's action demonstrates our determination to deprive the Government of Iran and its terrorist proxies of the illegal money they rely on to threaten the lives and safety of the citizens of the United States and elsewhere," said Deputy U.S. Attorney Sean S. Buckley.

According to the Monday statement, two Chinese companies, Blessed Trust and Hexa Whale, used trading accounts on Binance to launder proceeds of the black-market oil sales to funnel the funds to the Iranian government and its proxies. 

Prosecutors said that Blessed Trust represents itself as a digital asset custodial services firm to other financial services providers, while providing fiat-to-crypto conversion services for Iran-linked transactions. Hexa Whale allegedly provided similar services, while portraying itself as a commodities brokerage. Both companies counted Chinese oil and petroleum products companies among their clients.

More than $1.5 billion

Furthermore, the DOJ noted that it has identified a series of interrelated unhosted crypto addresses that have received and distributed more than $1.5 billion of proceeds from the illicit sale of Iranian oil. These addresses, collectively referred to as "Entity A," funneled funds to IRGC-related businesses and crypto addresses, and an Iranian crypto exchange. Blessed Trust and Hexa Whale largely facilitated the transfers, the statement said.

"The Government of Iran relies on black-market sales of sanctioned crude oil to fund its military and foster terrorism in the Middle East and around the world, along with other malign efforts to develop a nuclear program and ballistic missiles capable of delivering nuclear payloads," Buckley said.

The U.S. has imposed a series of sanctions targeting Iran's oil revenue and shipping. Last month, Treasury Secretary Scott Bessent announced the Trump administration's plan to impose secondary sanctions to target Iran's sources of revenue — specifically digital assets, technology, aviation, gold, and shipping — in what officials have described as an "economic D-Day."

In June, the U.S. sanctioned Iran's largest crypto exchange Nobitex and said it was a key player in sanctions evasion, terrorist financing, and transactions linked to IRGC.